The ongoing cost-of-living crisis has placed unprecedented pressure on low-income and vulnerable households. As everyday expenses soar, these segments face heightened financial insecurity, limited access to credit, and greater risk of exclusion from essential financial services. For banks, this is not just a moment of social responsibility—it is a strategic opportunity to reimagine customer centricity and drive meaningful financial inclusion.
Banks have traditionally focused on the most profitable customers, often overlooking the needs of those with less financial clout. Yet, the majority of a bank’s customer base falls into the lower-income bracket, representing both a significant social mandate and a long-term business opportunity. By leveraging customer experience (CX) analytics, artificial intelligence (AI), and digital tools, banks can empower these segments, foster loyalty, and build resilience for both customers and the institution itself.
Customer centricity begins with understanding. While banks have access to vast amounts of data, the real value lies in transforming this data into actionable insights. Traditional segmentation—based on simple demographics like income or location—fails to capture the complexity of customer needs, especially for vulnerable groups. Modern approaches use advanced analytics and AI to create multidimensional segmentation models, incorporating behavioral, transactional, and psychographic data.
For example, 3D segmentation mapping enables banks to identify nuanced needs and vulnerabilities, such as financial literacy gaps, digital adoption barriers, or specific life-stage challenges. By validating these segments with multiple data sources—transaction history, customer feedback, and even social media—banks can tailor products and communications to the real circumstances of low-income households. This approach not only supports compliance with regulations like the UK’s Consumer Duty but also ensures that interventions are relevant and effective.
Budgeting is a critical need for lower-income customers, yet traditional tools often require significant effort and financial literacy to use effectively. Challenger banks have pioneered features like savings “pots” or “spaces,” allowing users to allocate funds for specific purposes and set savings goals. However, these tools are often underutilized by the very segments that need them most.
Banks can go further by integrating AI-driven nudges and auto-categorization of spending, making budgeting effortless and intuitive. For instance, digital platforms can proactively alert customers to unhealthy spending patterns, suggest ways to save on recurring bills, or automate debt repayments. Open Banking capabilities can aggregate accounts and provide a holistic view of finances, empowering customers to make informed decisions and build long-term resilience.
Access to fair credit is essential for financial inclusion, but it must be balanced with responsible lending practices. During economic uncertainty, lower-income households are more likely to need short-term credit for essentials like energy bills or groceries. Innovative products, such as Buy Now, Pay Later (BNPL) schemes, can offer flexibility—but without proper controls, they risk exacerbating financial distress.
Banks should use data and AI to establish fair eligibility criteria, set sensible borrowing limits, and monitor usage patterns. Controls can be tailored to customer maturity and needs, such as restricting BNPL to essential categories or limiting frequency. By embedding these safeguards into the customer experience, banks can support financial health while minimizing risk.
Research consistently shows that financial literacy is lower among vulnerable segments. Banks have a unique opportunity to bridge this gap by embedding financial education into digital experiences. AI-powered platforms can deliver personalized tips, simulate the impact of financial decisions, and guide customers through complex processes like loan applications or debt management.
Open Banking tools can further empower customers by visualizing their financial situation, identifying opportunities to save, and even automating actions like switching to cheaper utility providers. By making financial education accessible, relevant, and actionable, banks can help customers build confidence and resilience.
While digital tools are powerful, true customer centricity requires empathy. Vulnerable customers often value human support, especially during moments of financial stress. Banks should design digital services that are not only accessible and intuitive but also offer seamless transitions to human assistance when needed.
For example, combining AI-driven insights with access to professional financial coaches—either virtually or in-branch—can provide reassurance and tailored guidance. The tone of digital communications should be inclusive, motivational, and reassuring, avoiding jargon and focusing on empowerment. By merging technology with the human touch, banks can create experiences that are both scalable and deeply personal.
Delivering on this vision requires more than just new products. Banks must invest in modern, composable technology architectures that enable rapid innovation and integration of new capabilities. Customer Data Platforms (CDPs) and cloud-native solutions are essential for creating unified customer profiles and orchestrating personalized journeys across channels.
Equally important is organizational change. Banks must break down product silos, foster cross-functional teams, and embed a culture of continuous improvement. By aligning around customer outcomes—rather than products or processes—banks can respond more quickly to emerging needs and regulatory expectations.
The cost-of-living crisis has underscored the urgent need for banks to serve all customers—not just the most profitable. By harnessing data, AI, and digital tools, and by designing with empathy, banks can drive financial inclusion, support vulnerable households, and build lasting loyalty. The future of banking is inclusive, resilient, and relentlessly customer-centric.
Publicis Sapient partners with leading financial institutions to design and implement data-driven, inclusive CX solutions. Our expertise spans advanced analytics, digital transformation, and organizational change—helping banks unlock new value for all segments of society. Connect with us to learn how your bank can lead the way in financial inclusion during economic uncertainty.